Pin Bar Breakouts Filtered by Moving Average Trend
Summary
This strategy combines pin bar signals with moving average trend filters to trade breakouts. It calculates fast and slow averages, identifies bullish or bearish candles using wick proportions, and checks whether price pierces an average before placing a stop entry beyond the prior candle. Positions use ATR-based stops and a risk-to-reward target; an average crossover can trigger an early exit, and unfilled entries are canceled after a set number of bars.
The document supplies default settings and a short BTC/USDT futures backtest window, but reports no performance statistics, so it does not establish profitability. The description simplifies some of the source logic: the code includes multi-bar average and candle-position trend checks, an optional normalized slope filter, and specific pierce conditions. Breakout failure, whipsaw in ranges, and sensitivity to instrument and timeframe remain concerns; the suggested parameter tuning and added filters are proposals rather than validated improvements.
Key ideas
- Fast and slow moving averages define the preferred direction for trades.
- Pin bar wick proportions and a pierce of an average are used to form candidate signals.
- Entries are stop orders beyond the previous candle, with ATR-based stops and risk-to-reward targets.
- A moving average recross can exit positions, while stale entry orders are canceled after a configurable delay.
- The supplied backtest settings do not include outcome statistics, so effectiveness is unproven.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.